Marciano Pay Down, Cash Up at Guess

The cash portion of Paul Marciano’s compensation at Guess Inc. nearly doubled last year while his total reported pay package slipped nearly 40 percent.

Marciano, cofounder, vice chairman and chief executive officer of Guess, had total compensation of $8.8 million during the fiscal year ended Feb. 2, down 38.9 percent from the $14.4 million reported in 2011, according to the company’s definitive proxy filed with the Securities and Exchange Commission Wednesday. Yet the cash portion of his pay — salary, nonequity incentive plan compensation and “other” payments — rose 95.7 percent to $6.9 million from $3.5 million in the prior year.

Except for an adjustment for a 53-week year, versus one of 52 weeks’ duration in 2011, Marciano’s salary was unchanged at $1 million. Nonequity incentive plan compensation more than doubled to $5.7 million from $2.4 million in 2011 as he collected bonuses tied to the performance of the company’s licensing business, including $2.2 million under a program established during the first quarter of last year and linked to the operating income of the licensing business at Guess. The remaining $3.5 million of the cash bonus constituted the final payment of a multiyear plan, also tied to licensing performance, enacted in 2005.

Other compensation rose to $159,000 from $119,000, with $73,000 of last year’s amount related to home security.

The shortfall in Marciano’s compensation versus 2011 came from a nearly $8.9 million drop-off in the essentially actuarial category of “change in pension value and non-qualified deferred compensation earnings,” recorded at zero last year compared with $8.9 million in 2011. His stock and option awards last year totaled $1.9 million, off 6.2 percent from $2 million in the prior year. Although not necessarily realized by the executive because of fluctuating stock prices and vesting schedules, the SEC requires the awards be recorded at grant date fair market value.

Guess’ profits were down nearly a third last year, to $181.5 million from $270.7 million in 2011, as revenues descended 1.1 percent to $2.66 billion. Operating income in the licensing segment fell 6.9 percent, to $101.2 million, while royalties fell 3.5 percent, to $117.1 million, providing for an operating margin of 86.4 percent, down from 89.5 percent in the prior year.

Latest Galleries

FREE ALERTS & NEWSLETTERS

Social Studies

In yet another fashion show shuffle, @elleryland is moving its show in sync with the Paris couture calendar — though the brand is still keeping one foot on the city’s ready-to-wear schedule. Their runway show in January will coincide with the launch of a new strategy: designing two main collections each year instead of four, which will then be released in four drops. “As we all know, the system needs to change. We need to show sooner to give time back to artisans and designers to do what they do best — create,” said founder Kym Ellery. #wwdnews #wwdfashion (📷: @kukukuba)

@maxmara’s classic 101801 coat was the cornerstone of its pre-fall 2018 collection. The design team expanded the traditional double-breasted, kimono-sleeved style into a trapeze coat, lean belted styles and a peacoat and presented them in monochromatic looks – like the camel one pictured here. #wwdfashion #prefall18 (📷: George Chinsee)

The @cfda has shifted the dates of #NYFW, with Men’s showing on February 5 through February 7, and Women’s will directly follow, running from February 8 through 14. The preliminary schedule will be released on the CFDA’s web site in the next few days, but Mark Beckham, VP of marketing for the CFDA, revealed that @rafsimons will be back to close the men’s-specific part of the week with a show on February 7 #wwdfashion (📷: Kelly Taub)

@ferragamo is introducing a new space dedicated to the development of women’s and men’s leather good samples. The laboratory, which is created eco-friendly materials and designed to reduce the environmental impact of the manufacturing processes, will allow the company to expand its accessories offering through traditional artisanal approaches. #wwdfashion (📷: @aitorrosasphoto)

How does a “regular, degular, schmegular” girl from the Bronx, N.Y., become a Grammy-nominated artist with a certified platinum record in less than a year? Call it the @iamcardib come up. The 25-year-old has become a musical sensation, and the fashion world is taking note. “If I could describe her style I would say drama. She’s really into the dramatics,” says Cardi B’s stylist @kollincarter. See how Carter styles her bold and out there looks with the link in bio. #wwdfashion

“There is no formula. There is no guideline. I can watch Ted Talks all day, but there is no one who can advise me on exactly what it is I should be doing,” said @ronniefieg, CEO of @kith, in an interview with WWD’s @ariahughes at the brand’s new SoHo office in Manhattan. Head to WWD.com to see how Fieg went from hanging out in shoe stockrooms at 13 to building his own business. #wwdfashion (📷: @weston.wells)

@fearofgod and @maxfieldla have teamed up on a pop-up installation. The store, located in the gallery space across from Maxfield’s Melrose Ave location, is the site of the brand’s House of God pop-up in which Fear of God founder @jerrylorenzo has created a church-inspired installation. A dozen vintage church pews sit in front of an LED screen playing 90s gospel singers in an effort to re-create an environment akin to a Southern Baptist Church, Lorenzo explained. Read more about the pop-up on WWD.com #wwdfashion (📷: Jennifer Johnson)

Known for his sleek, sophisticated American glamour, Norman Norell is the subject of an upcoming exhibition at @fitnyc. “Norell: Dean of American Fashion,” which runs from February 9 through April 14, will feature approximately 100 ensembles and accessories. His best work is exemplified by the designer’s glittering “mermaid” gowns frosted with thousands of hand-sewn sequins – like the one pictured. (📷: William Helburn) #wwdfashion

For pre-fall 2018, @balmain didn’t let go of the glitz. A crystal embroidered baseball jacket priced at around $40,000 hangs in the “couture” section of the brand’s first men’s pre-collection. Sporting the words “Balmain Army” across the back, the item took around two months to make. “When it was completed, it was like Christmas, it was like, ‘It’s done, it’s exactly what I wanted,’” said Balmain’s creative director @olivier_rousteing during a tour of the collection in a Paris showroom on Monday. #wwdfashion